AGF Management Limited (AGF) Confirms Court Sanction of Smith & Williamson Merger

TORONTO, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Further to the announcement made , AGF Management Limited (TSX:AGF.B) (AGF) today confirms that the merger between Tilney and Smith & Williamson to create one of the U.K’s leading integrated wealth management and professional services groups has received Court sanction. The merger is expected to complete on September 1, 2020.

“As a long-standing member of the Smith & Williamson Board, and on behalf of AGF, I would like to congratulate Smith & Williamson and Tilney on the approval of this merger,” said Blake C. Goldring, Executive Chairman, AGF. “This merger delivers on our long-term investment strategy in the U.K. and we are excited by the opportunities completing this transaction provides AGF.”

AGF first entered the U.K. private client space with an initial investment in U.K.-based private client asset manager NCL (Securities) Limited in 1998, which later led to making a further investment into an enlarged company created by the merger of NCL and Smith & Williamson in 2002.

“The closure of this transaction affords AGF greater flexibility to further invest in strategic areas of growth for the firm,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “Additionally, to deliver continued value for our shareholders, we anticipate using the proceeds to fund future share buybacks and service debt repayment.”

Based on the terms of the transaction structure, AGF estimates that it will receive total cash of approximately £177 million (approximately C$297 million), excluding tax and one-time expenses and subject to closing adjustments. Net cash after tax and one-time expenses will be approximately £164 million (approximately C$275 million). Total cash includes dividends and distributions of up to £28 million (approximately C$47 million) comprised of – an interim dividend of £2.7 million (C$4.5 million) that was received on February 7, 2020, an interim dividend of £5.3 million (C$8.9 million) that was received on June 26, 2020 and, immediately before closing, an estimated special distribution of approximately £20 million (approximately C$33 million). On closing, AGF is expected to receive cash proceeds of approximately £149 million (approximately C$250 million) compared to an estimated book value at closing of approximately C$150.0 million.



Upon completion of the transaction, AGF will no longer retain any equity consideration in the merged group.

The Company has entered into a forward contract to secure AGF’s cash consideration at an exchange rate of 1.68.

All approximated Canadian dollar figures assume an exchange rate of 1.68.

ABOUT AGF MANAGEMENT LIMITED

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.



AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With nearly $36 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

Media Contact:

Amanda Marchment

Director, Corporate Communications

416-865-4160,